Isle of Wight supervisors advertise FY26 tax and fee changes after residents press for teacher step raises

The Isle of Wight County Board of Supervisors voted unanimously April 30 to advertise proposed Fiscal Year 2026 tax and fee changes after a night of public comment that centered on teacher pay, a projected rise in tax relief costs, and utility and capital spending.

Board members voted to advertise the package that includes a proposed 5-cent increase in the real-estate tax rate (which county staff said would move the overall tax rate to 78 cents per $100 of assessed value), an increase in the machinery-and-tools (M & T) tax to $2.05 per $100 of assessed value, and an amended county fee schedule that county staff said will include higher water and sewer rates, higher utility connection/tap fees, and altered inspection and permitting fees. County staff and multiple supervisors described the advertisement step as a procedural move to allow formal public hearings and later final action.

The vote followed a lengthy public-comment period in which dozens of teachers, parents and school administrators urged the board to fund the Isle of Wight County Public Schools’ request to restore a frozen teacher “step” increase in addition to the state-mandated 3% raise. Several teachers and parents said experienced instructors are leaving the division for neighboring jurisdictions that pay more; multiple speakers characterized two consecutive years without a step increase as damaging to recruitment and retention. "We are asking you to stop the bleeding before it's too late," teacher Britney Winslow told the board.

County staff presented the proposed FY26 operating budget as a largely maintenance budget that includes a county- and schoolwide 3% salary increase and no new positions in the original proposal. Staff said the county faces rising costs in a number of line items, notably a rapidly growing local tax-relief program for disabled and elderly residents. Staff estimated that tax-relief payments would rise from about $2.5 million in the current year to roughly $3.6 million for FY26 after state-level changes and voter-approved constitutional amendments, and said the county’s overall operating budget proposal totals about $113 million.

On the revenue side, staff said a 5-cent real-estate tax increase would generate roughly $3.3 million; projected sales-tax growth would add about $600,000; business-equipment assessment changes were projected to add about $370,000; and EMS revenue improvements were projected at about $300,000. County staff also presented a proposed capital budget of $6.8 million funded with a mix of one-time fund-balance transfers, proffers and solar-farm payments; capital items listed included school bus garage work (the lowest-cost option shown was roughly $775,000), five school-bus replacements (~$763,000), school building projects and several public-safety vehicle replacements (Windsor Volunteer Fire Department engine: $1 million; replacement ambulances: $500,000 each).

To reduce pressure on the general fund, county staff proposed utility-rate increases and higher connection (tap) fees. In the staff scenario discussed at the meeting, water and sewer rates would rise so that a typical household using about 5,000 gallons per month would see an estimated combined increase of about $20 per month; connection fees were proposed to move to $5,000 for water and $4,500 for sewer. Staff also proposed a 24% reduction in the monthly stormwater fee (from $4.50 per ERU per month, or $54 per year, to about $41 per year) linked to a state change in program responsibilities.

Board members discussed alternatives and tradeoffs at length: several supervisors emphasized concern for teachers and first responders and said they wanted to find ways to fund step increases while also protecting residents on fixed incomes. Supervisors and staff discussed possible internal cuts, modest increases to business-license revenue estimates, raising the M & T rate by a nominal amount to capture new revenue, and use of a projected school “surplus” that school staff said could be roughly $3 million (board members noted part of that projection already is earmarked for items such as a $1,000 teacher bonus and higher school health-insurance costs).

After the presentation and public comment, the board put the county’s proposed FY26 tax ordinance and an amended fee schedule out for advertisement so residents can comment at forthcoming public hearings. The board recorded a roll-call vote approving advertisement: Supervisor Rountree—yes; Supervisor DeStefano—yes; Supervisor Jefferson—yes; Supervisor Acree—yes; Chairman Rosie—yes.

What the advertisement means next: advertising the proposed rates and fee schedule starts the formal public-notice process; the board must hold the advertised public hearings and can amend the proposal before final adoption. Board members at the meeting said they plan additional meetings with school officials and with county finance staff to refine revenue and expense projections, explore cuts and confirm which school and county items will be funded if the board adopts a final budget.

Speakers at the meeting and multiple supervisors urged the board to move more quickly toward a sustainable solution for school compensation and for county recruitment and retention. County staff and the school administration repeatedly flagged health-insurance cost increases and the growing tax-relief program as major budget pressures that will recur unless addressed by state-level change or different local policy choices.

The board did not take final action on the budget at the meeting; advertising the tax rates and fee changes allows public hearings to proceed on the proposed FY26 operating, capital and fee schedules.